Lesson 2.1.2a

2.1.2a Reasons aims and objectives change Quiz: Pearson Edexcel Business, Unit 6

20 questions

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Lesson 2.1.2a, Reasons aims and objectives change: 20 multiple choice questions for the Pearson Edexcel GCSE Business (1BS0), Unit 6: Growing the business, written with Revision Ninja.

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The 20 questions

  1. Which is an external reason a business might change its aims?

    • A decision to change the company logo
    • A new coffee machine installed in the staff room
    • A change in legislation
    • A rise in the number of staff car parking spaces
  2. Which is an example of a change in market conditions?

    • A decision by directors to move the head office
    • A rise in the business's own level of debt
    • A new staff training programme
    • A fall in consumer spending during a recession
  3. A new technology makes a firm's product obsolete. Which aim is most likely to change?

    • To invest in new technology to stay in business
    • To stop all investment in research
    • To close every site and sell up immediately
    • To cut the product range to zero
  4. Poor performance, such as losses, is most likely to lead a business to change its aims to:

    • launch a much larger range of products
    • increase the size of its workforce quickly
    • focus on survival rather than growth
    • focus on rapid overseas expansion
  5. Which factor is an internal reason for a change in aims?

    • A rival launching a similar product in the same market segment
    • A new law on product packaging that all firms must follow
    • A rise in interest rates set by the central bank this year
    • A new owner with a different plan for the business
  6. Which is NOT one of the reasons aims and objectives change as set out in the specification?

    • A change in the company's postal address
    • Technology, such as new production methods and machinery
    • Legislation, such as new laws on product safety and labelling
    • Market conditions, such as changes in consumer demand
  7. A business's sales fall because consumers switch to cheaper rivals. Which reason for changing aims does this reflect?

    • Market conditions
    • Internal reasons
    • Legislation
    • Technology
  8. A café's sales fall after a new rival opens nearby. The owners now aim to keep the business open rather than open a second branch. Which change of aim is this?

    • From one product to a wider range
    • From growth to survival
    • From exporting to importing
    • From survival to growth
  9. A company stops selling in one country after losing money there. What change is this?

    • Entering a market
    • Increasing the product range
    • Exiting a market
    • Increasing the workforce
  10. A business reduces its workforce because a new machine does the work of 20 people. Which aim change does this show?

    • Increasing the product range
    • Entering new markets
    • Reducing the workforce
    • Growing the workforce
  11. A toy firm that sold 5 products now sells 12 after a successful year. Which aim change is this?

    • Increasing the product range
    • Exiting markets
    • Focusing on survival
    • Decreasing the product range
  12. A government raises the minimum wage. Which response would show a change in the business's aims?

    • A new aim to stop all trading immediately and close the business
    • A new aim to ignore all costs and focus only on sales volume
    • A new aim to reduce the workforce and improve productivity
    • A new aim to double the workforce quickly to meet demand
  13. Which example shows an internal reason for changing aims?

    • A new environmental law affecting the packaging the firm uses
    • A new managing director wants the firm to focus on quality
    • A fall in the value of the currency against the dollar
    • A sharp rise in global oil prices that raises transport costs
  14. A firm's profits have risen for three years and it has spare cash. Which aim change is most likely?

    • Growth through entering new markets
    • Reducing the workforce to the minimum
    • Survival by cutting its whole product range
    • Exiting its main market
  15. A bakery sees its sales fall because a new rival sells similar goods more cheaply. Which reason for changing aims is most relevant?

    • Internal reasons
    • Market conditions
    • Technology
    • Legislation
  16. A business shifts from focusing on survival to focusing on growth. Which change would best show this?

    • Opening new branches after a return to rising sales
    • Cutting its product range down to a single old product line
    • Closing its least profitable branches to reduce its costs
    • Reducing its workforce by a third after a fall in demand
  17. A car maker opens its first factory in India. Which aim change is shown?

    • Decreasing the product range
    • Exiting a market
    • Entering a new market
    • Reducing the workforce
  18. A firm finds that a new technology lets it sell online, but the old business model cannot support it. Which reason for changing aims is shown?

    • Market conditions
    • Performance
    • Technology
    • Legislation
  19. A business's owners decide to retire and sell up. Which reason for changing aims is shown?

    • Technology
    • Legislation
    • Internal reasons
    • Market conditions
  20. A business with falling profits for two years decides cutting costs is now its priority. Which reason for changing aims is shown?

    • Performance
    • Market conditions
    • Technology
    • Legislation

All Pearson Edexcel Business quizzes